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APRIL 2019

FREIGHT: DELIVERING OPPORTUNITY

FOR AUSTRALIA

PRIORITIES FOR THE NEXT AUSTRALIAN GOVERNMENT

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© Australian Logistics Council, April 2019

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LIST OF PRIORITIES 3INTRODUCTION 5The Australian Logistics Council 5IMPLEMENTING THE NATIONAL FREIGHT AND SUPPLY CHAIN STRATEGY 6PLANNING FOR FREIGHT’S FUTURE 7SUPPLY CHAINS IN NORTHERN AUSTRALIA 9EDUCATING THE COMMUNITY ABOUT FREIGHT 11THE ROADS OF THE 21ST CENTURY 12Building the Roads of the Future 12High Productivity Vehicle and Infrastructure Education Fund 13Maximising the Benefits of our Existing Roads 13Making Australian Roads Safer 14Mandatory Telematics and a National Operator Standard 14National Road Safety Governance Review 15Heavy Vehicle Safety Initiative 15A Shared Commitment to Driver Safety 16Training the Future 16ELECTRIC VEHICLES AND THE FREIGHT INDUSTRY 17Low Emission Vehicle Contestable Fund 17Zero Carbon Freight Offset 18Smart Cities and Suburbs Program 18National Electric Vehicle Fast-Charging Network 18TAXING FREIGHT COSTS CONSUMERS 19THE RAIL RENAISSANCE 21Inland Rail 21National Rail Plan 21Short Haul Rail and Rail Improvements 22Office of the National Rail Safety Regulator 23Advanced Track Management System 23THE SHARED FREIGHT TASK 24Air Freight 24Coastal Shipping 25Urban Freight and the Role of Local Government 25TECHNOLOGY 26Freight Data Hub 26Road Freight Telematics Data Project 27Transport Satellite Account 27CONCLUSION 28APPENDIX A – ALC NATIONAL PLANNING PRINCIPLES 29

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ALC MEMBERS

Last updated March 2019

Associate members

Corporate members

National sponsors Strategic partners

Honorary fellowsAndrew Ethell, March 2017Don Telford, March 2016Ingilby Dickson, March 2015Ian Murray AM, March 2012

Paul Little AO, February 2011Peter Gunn AM, February 2011Ivan Backman AM, May 2010David Williams OAM, May 2010

ALC MEMBERS

Research and universities


LIST OF PRIORITIES The incoming Australian Government should:

1. Quickly finalise and implement the National Freight and Supply Chain Strategy. This includes working with all state and territory governments to finalise action plans and put them into effect.

2. Use constitutional powers and financial leverage to ensure that any funding provided to state, territory or local government is conditional on delivering freight transport infrastructure free of operational restrictions, including curfews.

3. Require all jurisdictions to incorporate ‘freight and logistics lands’ as a distinct category in their planning instruments. To help achieve this outcome, the Australian Government should require the inclusion of such a category in planning instruments as a precondition for investing in transport infrastructure projects.

4. Only provide funding for transport infrastructure projects to jurisdictions that develop and adhere to land separation policies that appropriately zone freight, commercial, industrial and residential lands and implement policies to protect lands identified as suitable for freight purposes.

5. Adopt the ALC National Planning Principles as an example of best practice in planning and use incentive payments and other constitutional powers to secure their adoption by all jurisdictions.

6. Ensure the Freight and Supply Chain Unit at the Department of Infrastructure, Regional Development and Cities has sufficient personnel resources.

7. Prioritise the development, funding and execution of a comprehensive National Corridor Protection Strategy.

8. In regard to the Northern Australia Infrastructure Facility (NAIF):–– Extend the NAIF to 30 June 2026, and

provide NAIF with a further $5 billion to invest.

–– Allow NAIF to re-invest revenue from previous investments in Northern Australia economic infrastructure; and

–– Not allow NAIF to have its funds quarantined for any particular purpose, such as tourism.

9. Develop a timetable for the construction of road projects funded under the Roads of Strategic Importance initiative.

10. Protect the rail corridor between Tennant Creek and Mount Isa.

11. Reconstitute the Joint Standing Committee on Northern Australia and have the Standing Committee conduct an inquiry into the freight needs of Northern Australia.

12. Work with industry to develop and launch a communications strategy aimed at building community understanding of freight.

13. Develop freight related curricula for inclusion in relevant tertiary courses including, in particular, planning.

14. Establish a High Productivity Vehicle Infrastructure and Education Fund.

15. Ensure that the development phase of Heavy Vehicle Road Reform is finalised, and implementation commenced, by the end of the 46th Parliament.

16. Provide funding that allows industry to maintain the Master Code for heavy vehicle safety.

17. Amend the Heavy Vehicle National Law so that: –– It is mandatory for heavy vehicles to carry

telematic equipment capable of recording safety and other data as required by law; and

–– Heavy vehicle operators are required to meet a National Operating Standard.

18. Include industry representatives on the National Road Safety Governance Review Panel.

19. Prioritise funding from the Heavy Vehicle Safety Initiative to support community understanding of how to drive safely around trucks.

20. Engage with industry to ensure that any independent bodies or panels empowered to make decisions that affect heavy safety and the economic viability of freight operators include industry representatives.

21. Look to promote logistics as a career of choice for all school leavers, and provide assistance for young Australians seeking a career as a truck driver.

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22. Establish a Low Emission Vehicles Contestable Fund and provide the Contestable Fund with $20 million per annum.

23. Establish a Zero Carbon Freight Offset for electric vehicles.

24. Extend the Smart Cities and Suburbs Program.25. Work with other governments and industry to

assess national electric vehicle fast charging network options.

26. Work with industry to design a Biosecurity Imports Levy that is properly based on biosecurity risks, ensures the burden of the Levy is shared commensurately with those risks, and makes certain that all revenue raised is directly expended on biosecurity measures.

27. Continue to design and construct Inland Rail. Specific attention should also be paid to: –– Developing design, funding and financing

proposals for the development of a link from Acacia Ridge to the Port of Brisbane.

–– Upgrading freight rail connections to the Port of Melbourne; and

–– Working with the NSW Government to improve rail connections linking Inland Rail to key NSW ports and intermodal terminals.

28. Complete the National Rail Plan.29. Support the continued upgrade of rail

infrastructure connecting ports to intermodal terminals and the wider freight network.

30. Expand the remit of the Office of the National Rail Safety Regulator to include a productivity mandate.

31. Continue to invest in and support the development of the Advanced Track Management System.

32. Amend the Sydney Airport Curfew Act 1995 (Cth) so that an objective noise standard is used to determine what freight only flights can take-off and land at Sydney Airport during the curfew period.

33. Conduct a cost-benefit analysis on Australia’s coastal shipping – particularly whether changes made by the Coastal Trading (Revitalising Australian Shipping) Act 2012 delivered the desired outcomes.

34. Partner with a state, territory or local government to trial a freight consolidation centre in a major city.

35. Establish a fund to help local governments develop co-ordinated urban freight plans.

36. Establish the Freight Data Hub and provide sufficient funding to develop, aggregate and publish data for effective use by industry and government.

37. Take leadership in the design of a common data set for the transport and logistics industry.

38. Continue to support the Road Freight Telematics Data Project and, through this project, publish the top 10 most underserved routes for heavy vehicle rest areas.

39. Ensure the Australian Bureau of Statistics continues to develop and publish the Australian Transport Economic Account as a regular feature in the Australian National Accounts.


The Australian Logistics Council (ALC) represents the major and national companies operating in the Australian supply chain. This election document outlines the policy positions ALC recommends should be implemented by the next Australian Government.

INTRODUCTION The 45th Parliament has witnessed some significant developments for Australia’s freight logistics industry. Since the 2016 Federal Election the Australian Government has: –» Begun to develop a National Freight and

Supply Chain Strategy;–» Invested $5.3 billion in Western Sydney Airport;

and–» Invested $9.3 billion in Inland Rail.

Given that these initiatives have been discussed for years – and in some cases decades – it is heartening to see meaningful progress being made. Yet more work will be required in the life of the 46th Parliament to complete these projects – and to undertake other vital reforms to secure the continued efficiency and safety of Australia’s supply chains.

This is not a niche issue. The freight industry impacts on every Australian in every community every day. Improving the performance of Australia’s supply chains is essential to meeting the ever growing demand for freight, which is being driven by strong population growth domestically, and increasing demand for Australian exports globally.

Around 1.2 million Australians are employed in the freight logistics sector. These people strive every day to ensure we have the essential and non-essential items we need in our day-to-day lives.

They are also responsible for answering the dramatically increasing delivery demands of e-commerce and helping to export the goods and commodities on which Australia’s wealth is built. Yet, our growing population, rising levels of congestion and decades-worth of inadequate planning for freight movement are all making these tasks harder.

Adding to these challenges are restrictive practices such as curfews and heavy vehicle bans on certain routes that deny freight logistics professionals the operational flexibility they need to do their jobs effectively.

A reduced supply of land available for the expansion of freight facilities is another major issue, as governments re-zone land previously intended for industrial purposes in order to prioritise new residential developments.

The incoming Australian Government has a responsibility to address these matters by completing and implementing the National Freight and Supply Chain Strategy. In this document, ALC sets out its priorities for action in the 46th Parliament, so that Australians can share in the benefits that come from improved supply chain performance.

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IMPLEMENTING THE NATIONAL FREIGHT AND SUPPLY CHAIN STRATEGY

“A National Freight & Supply Chain Strategy presents an opportunity for a true national approach to freight that transcends borders and transport modes and creates an environment to deliver significant productivity, safety and environmental reforms”

Inquiry into National Freight and Supply Chain Priorities, p. 3

The next Australian Government must implement the National Freight & Supply Chain Strategy (the National Strategy). The National Strategy was announced in November 2016. Since then industry has worked closely and effectively with the Department of Infrastructure, Regional Development & Cities (DIRDC) to develop the National Strategy.

Significantly, the government has provided additional funding to support the development and implementation of the National Strategy since it was announced.

In 2018-19, $5.1 million was provided for the National Strategy, and a further $16.5 million has been allocated in the 2019-20 Budget. Within this pool, $8.5 million has been allocated to design a freight data hub and develop a freight data exchange pilot.

In May 2018 the Australian Government released the Report of the Inquiry into National Freight and Supply Chain Priorities (the Inquiry Report). The Inquiry was undertaken by a panel of industry experts, and their report provides 54 short, medium and long-term priorities.

Following the release of the Inquiry Report, the Council of Australian Government’s (COAG) Transport & Infrastructure Council (TIC) agreed in May 2018 to a framework to develop a 20-year National Strategy. The first meeting of TIC after the election will consider the National Strategy.

State and territory jurisdictions have also committed to develop Action Plans designed to show how they will implement the National Strategy in their own jurisdiction. It is hoped TIC will consider these in November 2019.

Governments and industry have made a significant investment of time and resources in the development of the National Strategy. ALC is pleased we have an unambiguous and bipartisan commitment that the next Australian Government will act quickly to finalise and implement the National Strategy.

Priority

Quickly finalise and implement the National Freight and Supply Chain Strategy. This includes working with all state and territory governments to finalise action plans and put them into effect.


PLANNING FOR FREIGHT’S FUTURE

“A national approach to freight that encompasses planning … is important to maximise benefits to Australia”


The next Australian Government should take a greater leadership role in planning policy, to support the efficient and safe movement of freight, as well as the liveability and amenity of our cities.

As the Inquiry report highlighted, poor planning disadvantages freight operators as well as residents. Residential developments encroaching on freight facilities reduce both the amenity for residents and the efficient operations of those freight facilities.

For example, Australia’s two largest container ports – Port Botany and the Port of Melbourne – are facing encroachment challenges. Residential developments have been built adjoining a freight rail line to Fremantle Port. Further developments are mooted near Sydney Airport – a crucial freight facility already affected by curfews.

The Inquiry Report noted that:

‘current and future freight corridors need to be planned and sufficiently protected from urban encroachment.’1

To achieve this aim, the Inquiry Report recommended that:

–» A map of current and future key freight routes, including freight corridors, be developed.

–» Ensure all tiers of government integrate appropriate land use planning protections for existing freight related activities such as: –– Preservation of freight lands–– Buffer zones around key freight hubs to

allow 24-hour freight operations–– Protection of corridors and buffer zones as

well as sites for future freight purposes–– Protecting existing freight areas from urban

encroachment

–– Improving communication on current and future noise issues; and

–– Identifying land for current and future logistics uses.

These protections are relevant to all modes of freight transport.

While recognising that states and territories have primary responsibility for planning policies, there are mechanisms available to the Australian Government that will allow it to drive improved, nationally consistent outcomes.

Australia’s global competitiveness demands planning systems which recognise that freight does not stop at state borders – especially in a globalised trading environment. More than ever, Australians have a right to expect that their national government will take a lead in encouraging planning reforms that promote greater supply chain efficiency.

ALC believes the best way to implement the planning practices identified in the Inquiry Report is for the Australian Government to use its constitutional powers when providing grants and other financial assistance to attach conditions that require state and territory governments to enact planning reforms.

The next Australian Government should encourage state, territory and local governments:

–» To not impose curfews or other operational restrictions on key freight infrastructure and facilities

–» To create a distinct category – ‘freight and logistics lands’ – in their planning documents and develop appropriate land use instruments that permit freight infrastructure to operate on a 24/7 basis; and

–» To adopt the ALC National Planning Principles (see Attachment A).

1 Australian Government, Inquiry into National Freight and Supply Chain Priorities (2018), 8.

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PriorityThe incoming Australian Government should: –» Use constitutional powers and financial

leverage so that any funding provided to state, territory or local government is conditional on delivering freight transport infrastructure free of operational restrictions, including curfews.

–» Require all jurisdictions to incorporate ‘freight and logistics lands’ as a distinct category in their planning instruments. To help achieve this outcome, the Australian Government should require the inclusion of such a category in planning instruments as a precondition for investing in transport infrastructure projects.

–» Only provide funding for transport infrastructure projects to jurisdictions that develop and adhere to land separation policies that appropriately zone freight, commercial, industrial and residential lands – and implement policies to protect lands identified as suitable for freight purposes.

–» Adopt the ALC National Planning Principles as an example of best practice in planning and use incentive payments and other constitutional powers to secure their adoption by all jurisdictions.

To support the Australian Government’s leadership in this area, ALC recommends that the Freight and Supply Chain Unit, currently working on the National Strategy and situated within DIRDC, be expanded to include freight and planning experts.

PriorityEnsure the Freight and Supply Chain Unit at the Department of Infrastructure, Regional Development and Cities has sufficient personnel resources.

Finally, as has been explained by Infrastructure Australia, there is a need to develop a National Corridor Protection Strategy. This will require Australian Government leadership.2

Effective corridor protection not only serves to prevent future community discord over land use, but can also deliver significant savings for taxpayers when it comes to the cost of building infrastructure.

Infrastructure Australia underscored this fact in 2017 when it found that close to $11 billion could be saved on land purchases and construction costs for seven future infrastructure priorities listed on the Infrastructure Priority List if swift action was taken to preserve relevant corridors.3

The development of a National Corridor Protection Strategy will enable the Australian Government to properly identify future transport corridors and begin to implement policies, such as land acquisition, that can protect these corridors. This will deliver savings on infrastructure costs for taxpayers, whilst simultaneously contributing to enhanced supply chain efficiency.

A National Corridor Protection Strategy should also identify sites to be preserved for the construction of intermodal terminals and warehousing precincts.

PriorityPrioritise the development, funding and execution of a comprehensive National Corridor Protection Strategy.

2 Infrastructure Australia, Office of the Infrastructure Coordinator - Submission to Productivity Commission Development of a National Corridor Protection Strategy - www.pc.gov.au/__data/assets/pdf_file/0004/135895/subdr185-attachment-infrastructure.pdf

3 Infrastructure Australia, Corridor Protection: Planning and investing for the long term (July 2017), p.2


SUPPLY CHAINS IN NORTHERN AUSTRALIANorthern Australia’s geographic proximity to growing Asian markets represents a significant opportunity for Australian exporters – and the importance of these markets to Australia’s domestic economy will only grow in the years ahead, as a result of free trade agreements the Australian Government has signed with key trading partners in recent years.

Yet, Australia’s ability to take full advantage of these opportunities will rely on ensuring Northern Australia’s supply chain infrastructure is able to perform to a high standard, and that ‘missing links’ are quickly addressed.

The Australian Government has recently completed several significant reports on Northern Australia development – highlighted by the publication of Our North, Our Future: White Paper on Developing Northern Australia (the White Paper) and the Northern Australia Audit – Infrastructure for a Developing North. Recent parliaments have also supported the Joint Standing Committee on Northern Australia.

In 2016, on the back of the White Paper, the Australian Government established the Northern Australia Infrastructure Facility (NAIF) - a $5 billion concessional loan facility designed to encourage and complement private sector investment in economic infrastructure4. Changes to NAIF’s investment mandate in April 2018 further expanded the ability for NAIF to invest in critical infrastructure in Northern Australia. 5

Under section 8(1) of the Northern Australia Infrastructure Facility Act 2019 (Cth), NAIF can not provide financial assistance beyond 30 June 2021.

ALC believes that NAIF should be extended to 30 June 2026 – with a further $5 billion committed. ALC further supports NAIF having the ability to re-invest revenue received (from its concessional loan scheme) into further economic infrastructure in Northern Australia. This would be consistent with the approach taken by the Clean Energy Finance Corporation (CEFC).

ALC also believes that segregating NAIF funds for specific purposes, such as tourism, can be impracticable. In reality, economic infrastructure serves several purposes, and pigeonholing infrastructure under distinct categories is unnecessary and may create confusion.

PriorityThe Northern Australia Infrastructure Facility should:

1. Be extended to 30 June 2026, with a further investment of $5 billion;

2. Allow revenue from previous investments to be further re-invested in Northern Australia economic infrastructure; and

3. Not have its funds quarantined for any particular purpose, such as tourism.

Another significant development arising from the White Paper was the development of the Roads of Strategic Importance (ROSI) initiative. The ROSI initiative will provide $4.5 billion to develop key freight routes across Australia. Of this $4.5 billion, $1.5 billion has been quarantined for roads in Northern Australia.

Through this quarantined fund, several roads projects were funded in the 2018-19 and 2019-20 Commonwealth Budgets. This includes funding for roads in the following corridors: -

–» Alice Springs to Darwin;–» Newman to Katherine;–» Alice Springs to Hall Creek;–» Tennant Creek to Townsville; and–» Adelaide River to Wadeye.

4 ‘Economic infrastructure’ is defined by section 3(2) of the Northern Australia Infrastructure Facility Act 2019 (Cth) as infrastructure that (a) provides a basis for economic growth in Northern Australia and (b) stimulates population growth in Northern Australia.

5 See https://naif-gov-au.industry.slicedtech.com.au/wp-content/uploads/2018/04/20180418-NAIF-welcomes-Investment-Mandate-changes-.pdf

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To further complement the ROSI initiative, the Australian Government should develop a timetable for the construction of the key freight routes. This would provide certainty for investors and producers.

PriorityDevelop a timetable for the construction of road projects funded under the Roads of Strategic Importance initiative

Linking with our policy to develop a National Transport Corridor Protection Strategy, ALC recognises that a future Australian or state government may fund the construction of the Tennant Creek to Mount Isa railway. In the event this occurs, it is important that a corridor be protected for this future rail line. The Australian Government should work with the Northern Territory Government and the Queensland Government to ensure this corridor is protected.

PriorityProtect the rail corridor between Tennant Creek and Mount Isa

Finally, it is worth noting that the Joint Standing Committee on Northern Australia (the Standing Committee) completed just one inquiry over the last three years. The next parliament should reconstitute the Standing Committee and undertake an inquiry into the freight needs of Northern Australia. This would complement the implementation of the National Freight and Supply Chain Strategy, and ensure the unique circumstances faced by freight logistics operators in Northern Australia are fully addressed.

PriorityReconstitute the Joint Standing Committee on Northern Australia and have the Standing Committee conduct an inquiry into the freight needs of Northern Australia


EDUCATING THE COMMUNITY ABOUT FREIGHT

“There needs to be a social licence for freight, and education and expectations that freight is a valued system contributing to community well-being and prosperity. Governments and industry need to collaborate for this to be realised”

Inquiry into National Freight and Supply Chain Priorities, p.8

Every Australian, every day, relies on freight.

The fundamental importance of the freight industry is too often masked by its success. Australians expect that essential groceries and medicines will be available where and when they need them. That expectation is almost always met. This success sees the industry too often taken for granted. The comparatively minor irritation of a slow moving truck or the lights and noises emanating for ports, airports, intermodal terminals and railways are rarely balanced against the essential task of getting food on Australian tables or supporting the exports that secure our nation’s wealth.

To promote the importance of freight, ALC encourages the incoming Australian Government to:

–» Partner with industry to support a communication campaign highlighting the contribution that the freight logistics industry makes to the Australian economy – and its positive impact on the everyday lives of Australians;

–» Work with industry to help ensure that freight and logistics employees enjoy broad community support for the safe and efficient performance of their work; and

–» Promote freight related expertise and training in the national curricula to help ensure the workforce recognises the importance of the freight industry.

PriorityWork with industry to develop and launch a communications strategy aimed at building community understanding and support for the safe and timely delivery of goods across Australia and internationally.

PriorityDevelop freight related curricula for inclusion in relevant tertiary courses including, in particular, planning.

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THE ROADS OF THE 21ST CENTURY

“Target Commonwealth investment toward key freight routes and associated first/last mile roads, with investment aligned to the National Strategy”


Australia’s road freight task is growing.

From 2012-13 to 2016-17 the Total Tonne Kilometres (tkm) for road freight increased by 3.5% year-on-year. For 2016-17 the Bureau of Infrastructure, Transport and Regional Economics (BITRE) estimated total road freight at approximately 228 billion tkm.

The incoming Australian Government should:

1. Continue to build, upgrade and maintain key freight roads across Australia.

2. Support the use of new technologies, and reform road pricing, to maximise the benefits of our existing road infrastructure; and

3. Continue to make Australian roads safer.

Building the Roads of the FutureIn February 2019, Infrastructure Australia released its Infrastructure Priority List, which included several road infrastructure projects that are critical to the freight logistics sector.

The projects identified below should be prioritised for investment by the incoming Australian Government:

Project State/Territory Objective

Regional Road Network Safety Improvements National To recognise the need to continue identifying, assessing and

prioritising high-risk sections of regional roads across Australia.

Moorebank Intermodal Terminal Road Connections Upgrade New South Wales To increase network efficiency and improve road access for

freight vehicles to the Moorebank Intermodal Terminal.

Newell Highway Upgrade New South Wales To improve several sections of the highway to support safe HPV access, and improve safety and reliability.

Bruce Highway Upgrade Queensland To improve capacity, flood resilience and safety of the Bruce Highway through road upgrades.

Adelaide North-South Road Corridor Capacity South Australia

To enhance road capacity and improve traffic flows with installation of ITS – improving the flow of freight to and from Adelaide Airport and the Port of Adelaide precincts.

Burnie to Hobart Freight Corridor improvements Tasmania

To enhance capacity of Tasmania’s inland freight corridor though duplications and other enhancements to current road and freight rail infrastructure.

Connecting Eastern Freeway to CityLink Victoria

To complement the North East Link (being constructed) and reduce a significant traffic congestion issue in Melbourne’s existing freight network.

Mitchell & Kwinana Freeway Improvements Western Australia

To enhance capacity of major north-south freight route in Perth and improve congestion by installing ITS technology to manage traffic flows.


High Productivity Vehicle and Infrastructure Education FundHigh Productivity Vehicles (HPVs) are truck and trailer combinations which permit a greater payload than traditional freight vehicles, allowing more freight to be transported. They help improve delivery times and reduce road congestion.

HPVs are also safer and cleaner than older heavy vehicles.

Operating these larger, newer, safer and more efficient vehicles will require infrastructure upgrades to the road network.

Additionally, there is reluctance in some quarters of the community to facilitate their use on Australian roads. The fact that larger vehicles can be among the safest on the road is not well understood.

To address these challenges, the incoming Australian Government should establish a High Productivity Vehicle Infrastructure and Education Fund.

This fund would allow local governments/road managers to apply for funding to upgrade infrastructure or commence community education campaigns to facilitate the movement of high productivity vehicles on key freight routes – for example, running A-doubles from Melbourne to Toowoomba.

PriorityEstablish a High Productivity Vehicle Infrastructure and Education Fund.

Maximising the Benefits of our Existing RoadsIn 2017 The Productivity Commission warned that:

“… a key policy challenge is to improve transport efficiency within existing constraints. More efficient utilisation of existing transport infrastructure and better integration of transport services, where possible, is needed”.6

While governments need to continually invest in new roads, it is equally important that we maximise the productivity of the roads we have already built.

The Inquiry Report concludes that the Australian Government should:

“Implement a market solution to road user charging for all heavy and light vehicles, with pricing linked to the level of road infrastructure investment required, and community service obligation payments (or similar alternative) made available for maintenance of low volume roads which are key components of regional and rural transport.”7

Revenue from Fuel Excise will decline as electric vehicles come on to the market and vehicles continue to improve their fuel efficiency. Research has found that in 2013-14 Fuel Excise contributed 39% of public sector road related revenue, down from 44% in the early 2000s.8

DIRDC is currently working with stakeholders to progress Heavy Vehicle Road Reform (HVRR). ALC supports the intent of this reform, provided the revenue is reinvested into the roads from which the revenue was raised and is not diverted for other purposes.

ALC believes road pricing reform should be a high priority for the next Australian Government. Road pricing reform has been now promised for decades – and continued delay in confronting the issue will only make its ultimate resolution more difficult.

6 The Productivity Commission, Shifting the dial: 5 year productivity review (2017) 1327 Australian Government, Inquiry into National Freight and Supply Chain Priorities (2018), 108 See www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/BriefingBook45p/FundingRoads

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The incoming Australian Government should require TIC to conclude the development phase of the Heavy Vehicle Road Reform, and to have commenced the full implementation phase by the end of the 46th Parliament.

PriorityEnsure that the development phase of Heavy Vehicle Road Reform is finalised, and implementation commenced, by the end of the 46th Parliament.

Making Australian Roads Safer The Master Code

On 29 November 2018 the National Heavy Vehicle Regulator (NHVR) launched the Master Code for heavy vehicle safety – a registered Industry Code of Practice under the Heavy Vehicle National Law.

ALC led the development of the Master Code in partnership with the Australian Trucking Association (ATA).

The Master Code is an essential part of industry’s continuing efforts to improve heavy vehicle safety – not only for industry participants, but for all road users.

As the developers of the Master Code, ALC and the ATA have an obligation to ensure the Master Code remains current. This will be required when changes are made to the Heavy Vehicle National Law (and associated regulations) and/or best practice guidelines.

ALC therefore encourages the incoming Australian Government to fund costs incurred to maintain and update the Master Code.

PriorityProvide funding that allows industry to maintain the Master Code for heavy vehicle safety.

Mandatory Telematics and a National Operator StandardLeading the development of the Master Code illustrates the strong and proactive position ALC takes when it comes to improving safety and for all road users.

The Australian Government’s National Road Safety Strategy 2011-2020 (the National Road Safety Strategy) is another vital initiative for enhancing the safety of our road networks.

ALC continues to support the National Road Safety Strategy and is pleased that from 2011 the number of fatalities from crashes involving heavy vehicles has reduced.

However, ALC also recognises that Australia is currently not on track to meet the road safety targets agreed by governments in 2011.

In its submission to the Inquiry into the progress under the National Road Safety Strategy 2011-2020, completed by the Australian Government in 2018, ALC recommended, amongst other things:

1. The Heavy Vehicle National Law should require heavy vehicles to carry telematics equipment.

2. The Heavy Vehicle National Law should require heavy vehicle operators to meet a National Operating Standard. To meet this standard, heavy vehicle operators must be able to maintain a Safety Management System and demonstrate they have the financial capacity to operate and maintain, to a roadworthy standard, a heavy vehicle.

3. The National Road Safety Strategy should encourage State and Territory Governments to adopt educational programs designed to educate light vehicle drivers how to safely interact with heavy vehicles. This can be enhanced by prioritising heavy vehicle education programs in the next round of funding provide through the NHVR Heavy Vehicle Safety Initiative.

4. There should be a nationally consistent classification of ‘serious injury’ with the Bureau of Infrastructure, Transport and Regional Economics publishing the number of serious injuries from heavy vehicle crashes in their quarterly Fatal Heavy Vehicle Crashes Australia bulletins.


ALC continues to support these reforms and encourages the incoming Australian Government to prioritise action in these areas.

PriorityAmend the Heavy Vehicle National Law so that: –» It is mandatory for heavy vehicles to carry

telematic equipment capable of recording safety and other data as required by law; and

–» Heavy vehicle operators are required to meet a National Operating Standard.

National Road Safety Governance Review ALC suggests that the National Road Safety Governance Review, announced in October 2018 would be bolstered by including representatives from industry on the review panel.

PriorityInclude industry representatives on the National Road Safety Governance Review Panel.

Heavy Vehicle Safety InitiativeThe Australian Government, through the NHVR, provides funding through the Heavy Vehicle Safety Initiative (HVSI) to deliver tangible, value-for-money projects to deliver heavy vehicle safety benefits.

ALC believes future funding through the HVSI should target truck education programs to enhance community understanding of how to drive safely around trucks.

In 2018, 147 people died from 129 fatal crashes involving heavy vehicles in Australia. In terms of fatal heavy vehicles crashes, this is a reduction of 20.5% from 2017.9

But this doesn’t paint the whole picture – at least not in terms of perception. The perception when many people read these statistics is that truck drivers caused 147 deaths from 129 fatal crashes in 2018. This is not true.

National Transport Insurance (NTI) provides a biennial report, entitled the Major Accident Investigations Report, which delves deeper into to the numbers. NTI’s 2017 report found that in 93% of truck collisions which caused a fatality, the truck driver was not at fault.10 This figure has increased from 84% just two years prior.11

The best way to continue to reduce the number of fatalities involving a heavy vehicle is to continue to educate the community about how to drive safely around trucks.

PriorityPrioritise funding from the Heavy Vehicle Safety Initiative to support community understanding of how to drive safely around trucks.

9 See https://bitre.gov.au/publications/ongoing/fatal_heavy_vehicle_crashes_quarterly.aspx10 See www.nti.com.au/getmedia/5add0464-73dc-42ff-8fb0-c905ed8dcafa/2017-ntarc.pdf?ext=.pdf11 See www.nti.com.au/getmedia/fa633de1-b092-47a3-82fe-42a4e8d69eb2/2015-Major-Accident-Investigation-Report.PDF?ext=.pdf

–» Photo - Toll 1

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A Shared Commitment to Driver SafetyALC believes that measures to improve the safety of drivers in the heavy vehicle sector must satisfy three key criteria:

1. They must be based on evidence;2. They must be practical and workable; and3. They must not impose an unsustainable

economic burden on the industry.Safety is a paramount consideration for all participants in the heavy vehicle sector – because ultimately its workforce is its most valuable asset.

As an industry leader, ALC will work cooperatively with the next Australian Government to ensure that policy and regulatory settings protect the safety of heavy vehicle drivers.

As part of this, ALC encourages the incoming Australian Government to ensure that industry is closely involved in the development of policies and programs designed to improve heavy vehicle safety.

12 Adam Carey, Wheels not in motion: Australia running short of truckies (2016) see https://www.theage.com.au/national/victoria/wheels-not-in-motion-australia-running-short-of-truckies-20160506-goo7o5.html

13 See www.fullyloaded.com.au/industry-news/1809/australia-not-alone-in-driver-shortage-concerns14 See www.fullyloaded.com.au/industry-news/1809/australia-not-alone-in-driver-shortage-concerns15 Australian Government, Inquiry into National Freight and Supply Chain Priorities (2018), 5

This includes making certain that industry is properly consulted and represented during policy development, and that the industry is represented on any independent bodies which may be empowered to make decisions that affect heavy vehicle safety and the economic viability of freight operators.

PriorityEngage with industry to ensure that any independent bodies or panels empowered to make decisions that affect heavy safety and the economic viability of freight operators include industry representatives.

Training the FutureAn ageing workforce is a growing challenge many freight logistics operators face. A 2016 survey found that the average age of a truck driver is Australia was 47.12 Estimates in 2018 found this age approaching 50.13 Worryingly, it is estimated that just 15% of Australian truck drivers are under the age of 30.14

This does not bode well for Australia, where the freight tasked is estimated to double in the next 20 years.15

PriorityWork with industry to develop guidance materials that promote the freight logistics sector as a career of choice for all school leavers, and provide assistance for young Australians seeking employment in the industry.


ELECTRIC VEHICLES AND THE FREIGHT INDUSTRY

“All sectors of the freight industry will need to embrace technological innovation.”


To date, the uptake of electric vehicles in the freight industry has been led exclusively by the industry. However, many of the substantial benefits delivered through electric vehicles fall to the broader community. Therefore, the next Australian Government should take an active role in promoting and supporting the use of electric vehicles in the freight industry, for the benefit of the community.

The benefits of electric vehicles are largely known, though they are worth repeating:

–» Electric vehicles are sustainable – they do not emit harmful pollutants.

–» Electric vehicles are safe – they are typically manufactured to include the latest safety features, such as lane departure warnings. Electric vehicles also provide health benefits as air quality improves.

–» Electric vehicles are quieter – this opens the opportunity for electric vehicles to operate quietly and effectively in hours not available to operators of traditional vehicles due to curfews.

Many freight companies are looking to invest in electric vehicles but are concerned by the lack of interest and support from Australian governments. This is exemplified by the Senate Select Committee on Electric Vehicles which, in a report of 197 pages, mentioned freight just once.

Low Emission Vehicle Contestable Fund It is proven that incentives can help change consumer choice in markets, which is why the next Australian Government should seek to incentivise freight operators to purchase electric vehicles.

Indeed, in April this year, Toll Group purchased two electric vehicles (the Fuso eCanter) for in its Japanese fleet. Explaining the decision to purchase electric vehicles for their Toll Express Japan business, Toll acknowledged that incentives offered in Japan made the move to electric vehicles possible.

The next Australian Government should implement a Low Emission Vehicles Contestable Fund to co-fund up to 50% of the purchase price of an electric vehicle. ALC believes such a fund should be valued at $20 million per year.

The fund is based on a similar model operated by the New Zealand Energy Efficiency and Conservation Authority (EECA). In New Zealand, the EECA has used the Low Emission Vehicle Contestable Fund to provide more than $18 million (NZD) to 100 projects since 2016. This includes funding for:

–» The purchase of five electric vans to assess their suitability for widespread courier use;

–» The purchase of two 10 tonne electric trucks and supporting charging infrastructure;

–» Replacing two diesel trucks with electric vehicles for waste recovery; and

–» Designing and developing an electric truck to shuttle dairy products in Hamilton.

PriorityEstablish a Low Emission Vehicles Contestable Fund and provide the Contestable Fund with $20 million per annum.

16 See www.tollgroup.com/news-and-media/media-releases/toll-introduces-electric-vehicles-its-japan-fleet

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Zero Carbon Freight OffsetTax exemptions and offsets are another way the government can support the uptake of electric vehicles.

ALC supports providing a tax offset, per vehicle, for freight companies that purchase and utilise that electric vehicle in their commercial business. The offset could be known as the Zero Carbon Freight Offset (the Offset).

In the first instance, this offset should be valued at $30,000 – in line with the current instant asset write-off provisions. All freight companies registered for Goods & Services Tax in Australia would be eligible for the Offset. The Offset would apply to vehicles that do not rely on an internal combustion engine for propulsion.

PriorityEstablish a Zero Carbon Freight Offset for electric vehicles.

Smart Cities and Suburbs ProgramThe Smart Cities and Suburbs Program is a $50 million fund designed to support innovative projects that improve the liveability, productivity and sustainability of Australian cities.

The first round of funding from this program, totalling $27.7 million, was provided in November 2017. This funding supported 49 projects, including Smart Move Newcastle – a project designed to deliver (amongst other things) solar and battery powered electric vehicle charging points. Funding for electric vehicle charging infrastructure was also provided to Light Regional Council (in South Australia) under Round One of the program.

In November 2018, the Australian Government announced $21 million would be provided under this program to support 32 projects across Australia. With this announcement, the total pool of $50 million in funding has been allocated.

The response to the application process indicates there are still many projects that can be supported by the Australian Government. For the second round of funding, the Australian Government received 102 applications – demonstrating significant interest in the opportunities the program offers.17

There is a clear appetite for the Australian Government to continue to fund innovative and sustainable solutions for our cities.

PriorityExtend the Smart Cities and Suburbs Program.

National Electric Vehicle Fast-Charging NetworkIn 2019, Infrastructure Australia nominated a National Electric Vehicle Fast-Charging Network as a High Priority Initiative on their Infrastructure Priority List.18

As Infrastructure Australia states:

“… lack of access to charging stations has been identified by around two-thirds of motorists as a key barrier to the adoption of EVs. Australia currently has less than 800 charging stations, of which approximately 70 are fast charging.

Establishing a network of fast-charging stations on the national highway will help to overcome the ‘access to charging facilities’ barrier and reduce consumer anxiety about EV range.”19

The next Australian Government should work with industry and state, territory and local governments to examine the costs and requirements for the establishment of a National Electric Vehicle Fast Charging Network.

PriorityWork with other governments and industry to assess national electric vehicle fast charging network options.

17 See https://infrastructure.gov.au/cities/smart-cities/index.aspx18 Infrastructure Australia, Infrastructure Priority List (2019), 1219 Infrastructure Australia, Infrastructure Priority List (2019), 51


TAXING FREIGHT COSTS CONSUMERS

“The Australian Government is seeking to … reduce the costs of transporting goods through our major national container ports”

Terms of Reference for the Inquiry into National Freight and Supply Chain Priorities

The 2018-19 Commonwealth Budget provided for a Biosecurity Imports Levy (the Levy) to be collected from 1 July 2019. This measure was announced without prior notice to industry.

The original proposal for the Levy, as indicated in the 2018-19 Budget, was for:

… a new levy on sea imports, imposed on port operators from 1 July 2019 …

This measure will apply a $10.02 levy per twenty-foot container (or equivalent) and noncontainerised cargo will incur a levy of $1 per tonne.

…

In underlying cash balance terms the measure has a gain of $325.0 million over the forward estimates …

Existing fees and charges for border and biosecurity services will remain.20

Since the Levy was announced, the Department of Agriculture and Water Resources (DAWR) has undertaken some engagement with industry to determine how the Levy would work. This has included a review of the pricing mechanism as well as the imposition point.

In January 2019, the Australian Government commissioned Pegasus Economics to capture industry views on the Levy. The report from Pegasus Economics was subsequently publicly released on 29 March 2019. The report found that there is no consensus between industry and government regarding:

–» The appropriate imposition point of the Levy.–» The basis for calculating the Levy liability; and–» The collection mechanism for the Levy.21

The Pegasus Economic report further found that no impact analysis had been undertaken and there is no reliable estimate of the economic cost of collecting the Levy, or its impact on businesses or end consumers.22

In March 2019 the Australian Government further announced the creation of an Industry Steering Committee to help design the Levy.23 The 2019-20 Federal Budget also revised the start date of the Levy – from 1 July 2019 to 1 September 2019 to allow the Industry Steering Committee to make recommendations.24

Despite these announcements, industry remains concerned about the impact of the Levy. This concern arises because:

–» The policy rationale for the Levy has not being cleared explained. Indeed, the policy rationale behind the Levy has often changed. As Pegasus Economics noted: In other words, DAWR has offered multiple, conflicting justifications for the BIL (Biosecurity Imports Levy) as a supplement for Department funding, as a general revenue measure and as a Pigouvian tax directed towards correcting a specific market failure…25

–» The Levy differs from that proposed by the Craik Review.26

20 Budget Paper 2 2018-19 (2018), 721 Pegasus Economics, Report on the Biosecurity Imports Levy, (2019) iii. 22 Pegasus Economics, Report on the Biosecurity Imports Levy, (2019) iii. 23 Minister for Agriculture & Water Resources, Statement on biosecurity levy, 24 February 2019.24 Budget 2019-20, Budget Measures Budget Paper No. 2 2019-20, 21.25 Pegasus Economics, Report on the Biosecurity Imports Levy, (2019) 4-5. 26 Craik, Wendy, Palmer, David and Sheldrake, Richard, Priorities for Australia’s biosecurity system – An independent review of the capacity of the

National Biosecurity system and its underpinning intergovernmental agreement (2017), 120-121.

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–» The amount proposed to be collected is far in excess of the amount necessary to manage the biosecurity risks inherent in running sea cargo operations in Australia; and

–» Revenue raised by the Levy is returned to Consolidated Revenue. Industry believes that any revenue raised by the Levy should be used exclusively for biosecurity measures on Australian sea cargo.

ALC supports a robust and best practice biosecurity system. However, the proposed Levy is not based on risk and funds raised have no association with the cost of mitigating that risk.

For these reasons, ALC will not support the Biosecurity Imports Levy in its current form. The incoming Australian Government must work collaboratively with industry to develop a Levy that is based on risk, ensures the burden of the Levy is shared commensurately with that risk, and makes certain that all revenue raised is spent directly on enhanced biosecurity measures.

PriorityWork with industry to design a Biosecurity Imports Levy that is properly based on biosecurity risks, ensures the burden of the Levy is shared commensurately with those risks, and makes certain that all revenue raised is directly expended on biosecurity measures.


THE RAIL RENAISSANCE “Road transport will experience increased congestion and associated higher costs over the next 20 years. Investment in efficient rail freight connections to major ports and rail freight paths through metropolitan networks will take pressure off the road system.”


Inland RailThe Australian Government has committed to building Inland Rail – a once-in-a-generation freight rail project running from Melbourne to Brisbane.

ALC supports linking Inland Rail to the Port of Melbourne and the Port of Brisbane and providing efficient rail linkages to the ports of Botany, Kembla and Newcastle in New South Wales.

On current designs, Inland Rail will terminate at Acacia Ridge, approximately 30km south-west of the Port of Brisbane. To fully realise the national supply chain benefits of Inland Rail it is crucial that a dedicated freight rail link connect to the port. This is to ensure freight is not travelling on the same lines as passenger rail services.

Linking Inland Rail to the Port of Brisbane will improve the efficiency of freight delivery, with goods destined for the port not having to be loaded from rail to truck, or onto a shuttle rail (such as on the Beenleigh and Cleveland lines) at Acacia Ridge.

This means the work must now be undertaken to identify the best way of linking Acacia Ridge and the Port, as well as the best way to finance and fund the construction of this vital link.

The incoming Australian Government should also focus on upgrading freight rail connections to the Port of Melbourne, as well as improving connections from Inland rail to key NSW ports and intermodal terminals.

PriorityContinue to design and construct Inland Rail. Specific attention should also be paid to:

–» Developing design, funding and financing proposals for the development of a link from Acacia Ridge to the Port of Brisbane.

–» Upgrading freight rail connections to the Port of Melbourne; and

–» Working with the NSW Government to improve rail connections linking Inland Rail to key NSW ports and intermodal terminals.

National Rail PlanDuring 2015, the Australian Government published a Draft Freight Rail Policy Objectives Discussion Paper. The Paper contained a recommendation that any national reform work focussed on freight rail prioritise:

–» Harmonisation of all aspects of rail safety laws between states; and

–» That where economic benefits exist, moving towards a single set of laws across jurisdictions governing environmental regulation, workplace health and safety, workers’ compensation and drug and alcohol testing.27

The need for reform has not diminished. As the Inquiry Report recommended:

“1.13 Ensure standardisation and interoperability across rail networks, for example, train control and operating systems and rail gauge.”28

A single set of consistent national laws should be developed to regulate the movement of freight by rail in Australia.

PriorityComplete the National Rail Plan.

27 Australian Government, Australian Government’s Freight Rail Policy Objectives (2015), 2428 Australian Government, Inquiry into National Freight and Supply Chain Priorities (2018), 10

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Short Haul Rail and Rail ImprovementsMoving freight by rail, where it makes commercial sense, has the potential to significantly improve freight efficiency while at the same time improving urban amenity, reducing road congestion and decreasing queuing times at ports.

Accordingly, it is important that the incoming Australian Government has in place the capacity to identify projects that can facilitate these productivity enhancing outcomes.

For example, Infrastructure Australia has identified the need to improve rail freight access to Port Kembla.29 This could be completed by improving the Illawarra and/or Moss Vale –Unanderra lines, or by developing an alternative rail alignment to the port.

Additionally, constructing a direct rail connection to the Victorian International Container Terminal (VICT) – located at Webb Dock at the Port of Melbourne – will create efficiencies by removing extra truck legs and container moves, particularly for heavier export volumes.

VICT is one of the world’s most automated container terminals and has a capacity of 1 million twenty-foot equivalent (TEU) containers per annum.

However, the facility is severely disadvantaged by not having a direct rail connection. With the lack of direct rail to Webb Dock, VICT and the surrounding businesses rely heavily on the road corridor – which is being affected by restrictions introduced as a result of new residential developments. This includes heavy vehicle restrictions that have recently been introduced on Beach Road between the Port of Melbourne and Mordialloc.30

This goes to the heart of issues such as freight planning, urban encroachment and freight’s social licence.

The incoming Australian Government must act to protect critical freight infrastructure corridors, particularly where doing so will help to alleviate road congestion.

PrioritySupport the continued upgrade of rail infrastructure connecting ports to intermodal terminals and the wider freight network.

29 Infrastructure Australia, Infrastructure Priority List (2019), 91.30 Hon. Jaala Pulford MLC, Truck Curfew to Ease Congestion on Beach Road, 10 February 2019.


Office of the National Rail Safety RegulatorThe Office of the National Rail Safety Regulator (ONRSR) was established in 2012. ONRSR was established to:–» Encourage and enforce safe rail operations; and–» Promote and improve national rail safety.

ALC supported the creation of ONRSR and was engaged as the National Draft Rail Safety Law was discussed.

ONRSR was established as part of a Commonwealth policy designed to harmonise transport operations across Australia. In the road space, the NHVR was established in 2012.

However, there is one important difference between ONRSR and NHVR. The NHVR has a productivity mandate.31 ONRSR, while playing an important role in national rail safety, does not have the responsibility for the productivity and efficiency of Australian rail operations.

ALC believes this should change, with the remit of ONRSR broadened to incorporate the efficiency and productivity of the rail sector.

PriorityExpand the remit of the Office of the National Rail Safety Regulator to include a productivity mandate.

Advanced Track Management SystemThe Advanced Track Management System (ATMS) has been developed by the Australian Rail Track Corporation (ARTC).

ATMS is an important part of the solution to provide the rail innovation Australia needs – improving the safety of operations as well as enhancing reliability and network resilience.

The system can intervene by applying a train’s brakes to prevent passing the end of where it is permitted to travel or speeding. ATMS equipped trains can travel closer together and do not have to be restricted to long section separation between signals, meaning train crosses and passes will be more efficient.

ATMS also improves capacity of the network as precisely and safely directing rail traffic means much more of Australia’s freight can be moved across Australia on existing tracks.

PriorityContinue to invest in and support the development of Advanced Track Management System.

31 See www.nhvr.gov.au/files/201705-0533-nhvr-corporate-plan-17-20.pdf, 5.

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THE SHARED FREIGHT TASKAir FreightWhile many Australians associate freight with trucks and trains, shipping and aviation play an integral role in the Australian supply chain.

Air freight, for example, represents just 0.1% of Australia’s international freight task by weight, but 21% of Australia’s international freight task by value.32

ALC has often highlighted the key role air freight can play in delivering high-value and time-sensitive freight. This includes providing fresh produce to Asian markets as well as delivering medicines to regional, rural and remote communities.

Approximately 80 percent of air freight is carried in the belly hold of passenger aircraft. Therefore, any operating restrictions such as caps and curfews imposed at Australian airports limit the growth and efficiency of the air freight network.

One impediment to greater air freight efficiency is the operating restrictions imposed on airports. These regulations create significant inefficiencies and frequently fail to stay current as new technology allows for reduced aircraft noise levels and more efficient air navigation procedures.

A particularly egregious example occurs with regard to overnight freight flights operating under the Sydney Airport Curfew Act 1995 (Cth), which limits the flights authorised to operate at Sydney Airport during a curfew period.33

Under the legislation, certain prescribed aircraft are authorised for use during the curfew under strict conditions.34 However, the list of prescribed aircraft was developed in the 1990s and has not been updated since. This scenario can lead to perverse outcomes where more modern aircraft with a lower noise profile are prohibited from operating during curfew periods, merely because they are not specifically mentioned in regulations. For example, a Bae-146 aircraft may be used, but a Boeing 737 may not, despite being a newer, quieter and larger aircraft that airlines have invested in to reduce noise.35

As Sydney Airport said in its submission to the Inquiry into National Freight and Supply Chain Priorities:

“… by prescribing specific aircraft rather than an objective noise standard, newer and quieter aircraft are unable to operate during the curfew, while older and noisier aircraft continue to operate.” 36

A more rational approach would be to permit all freight aircraft to land, provided they don’t exceed a certain noise level.

The next Australian Government should embrace a more rational approach to the regulation of freight aircraft noise by ensuring regulations contain an objective noise standard, rather than nominating specific aircraft types which are permitted to operate during curfew periods.

PriorityAmend the Sydney Airport Curfew Act 1995 (Cth) so that an objective noise standard is used to determine what freight only flights can take-off and land at Sydney Airport during the curfew period.

32 Australian Airports Association, Submission to the Inquiry into National Freight and Supply Chain Priorities (2017), 233 Sydney Airport Curfew Act 1995 (Cth) s 734 Sydney Airport Curfew Act 1995 (Cth) s 1335 Qantas, National Carrier (November 2016), Issue 736 Sydney Airport, Submission to the Inquiry into National Freight and Supply Chain Priorities (2017), 5


Coastal ShippingThere are several competing views as to how coastal shipping should be regulated in Australia.

It is acknowledged the issue has been reviewed over the last few years.

ALC believes the current law makes coastal shipping cost prohibitive on certain key domestic routes, such as Brisbane-Townsville, thus reducing consumer choice and reducing supply chain efficiency.

The debate over the regulation of coastal shipping has become caught up in broader political debates. A rational, independent assessment of whether current arrangements are delivering the right outcomes for Australia’s supply chain is needed.

To determine this, a full and independent cost benefit analysis should be undertaken to examine whether current coastal shipping laws offer a net public benefit. Particular consideration needs to be given the different requirements of bulk commodities versus containers.

PriorityConduct a cost-benefit analysis on Australia’s coastal shipping – particularly whether the changes made by the Coastal Trading (Revitalising Australian Shipping) Act 2012 delivered the desired outcomes.

Urban Freight and the Role of Local Government

“Urban freight is growing faster than any other freight task in Australia, with all capital cities experiencing growth.”


The increasing popularity of e-Commerce is driving a significant uptake in the number of delivery vehicles operating in Australia, most particularly in major cities.

The Inquiry Report made several recommendations for improving urban freight that should be pursued by the Australian Government.37 In particular, urban consolidation centres – a place where freight is strategically consolidated to deliver a more coordinated, multi-modal approach to delivery – will likely play a significant role in reducing urban freight traffic.

The incoming Australian Government should partner with a state or territory government (or a major metropolitan council) to trial a freight consolidation centre in a major city.

The results of such a pilot can provide a useful empirical basis for demonstrating the effectiveness of this form of freight infrastructure and would help to encourage private sector investment in similar facilities at other locations.

PriorityPartner with a state, territory or local government to trial a freight consolidation centre in a major city.

Local Government also plays a crucial role in ensuring the efficient operations of our supply chains. It is often municipal councils that manage roads and regulate access to warehouses, particularly for heavy vehicles.

Councils are often not equipped with the personnel or resources needed to make effective decisions or ensure proper long-term planning. As a result, inconsistent decisions are too often made on matters such as vehicle access. These can adversely affect the movement of freight, add to operator costs and, ultimately, contribute to increased consumer prices and delays.

ALC believes the Australian Government can play a leadership role by incentivising good practice and rewarding those councils that commit to achieving greater consistency in this area.

PriorityEstablish a fund to help local governments develop co-ordinated urban freight plans.

37 Commonwealth Government, Inquiry into National Freight and Supply Chain Priorities (2018), 44.

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TECHNOLOGY“The process of undertaking the Inquiry highlighted the lack of robust performance measurement data to benchmark Australian supply chains across states and with international competitors. The ability to understand which components of a supply chain are operating effectively, or are weak links, is critical to the task of focussing investment or reform to make effective change.”


Freight Data HubA common concern expressed by many freight logistics industry leaders is the lack of meaningful data about the performance of Australia’s supply chains. This concern was echoed by the Inquiry Report, which found there was limited national data to measure and benchmark performance.

The lack of data is concerning as it makes it difficult for governments to prioritise investments and accurately measure the impact of new policies or infrastructure investments. Many of the impacts noted by the Inquiry Report, including urban encroachment issues, can only be completely understood once a solid evidence base is built.

The 2019-20 Federal Budget provided $5.2 million to design a ‘Freight Data Hub’ and $3.3 million to establish a Freight Data Exchange Pilot. In designing the Freight Data Hub, arrangements will be made for the collection, protection, dissemination and hosting of that data.

The government also funded the development of a Transport Satellite Account by the Australian Bureau of Statistics (ABS) in 2018.

The incoming Australian Government must finalise the establishment of the Freight Data Hub and provide sufficient funding to develop, aggregate and publish data for effective use by industry and government.

PriorityFinalise the establishment of the Freight Data Hub and provide sufficient funding to develop, aggregate and publish data for effective use by industry and government.

PriorityTake leadership in the design of a common data set for the transport and logistics industry.


Road Freight Telematics Data ProjectALC members have been cooperating with BITRE and the ABS since 2016 on the Road Freight Telematics Data Project (the Project).

The Project is designed to develop experimental indicators for:–» Congested freight-significant network locations–» Average travel speed of freight vehicles–» Routes taken by freight vehicles–» Origin and destination of freight vehicle

movements, and–» Freight vehicle stop locations and durations.

The intention is to identify congested networks, key freight routes and average travel speed and travel times on key freight routes. Other outputs developed would include where, when and for how long freight vehicles are stopping and the amount of road freight activity.

The Project could also be used to define the most underserved routes for heavy vehicle rest areas – with BITRE publishing an annual list of the top 10 underserved routes.

ALC believes the Road Freight Telematics Data Collection Project should continue to be supported by the Australian Government.

PriorityContinue to support the Road Freight Telematics Data Project and, through this project, publish the top 10 most underserved routes for heavy vehicle rest areas.

Transport Satellite AccountFlowing from the Inquiry Report, the ABS released an experimental Transport Satellite Account (known as the Australian Transport Economic Account) in October 2018.38

This initiative is essential to building the evidence base regarding the economic contribution the sector makes to the economy.

ALC supports the continued development and publication of this account, so that that the economic contribution of the sector is better understood by policy-makers and the wider community.

PriorityEnsure the Australian Bureau of Statistics continues to develop and publish the Australian Transport Economic Account as a regular feature in the Australian National Accounts.

38 See www.abs.gov.au/ausstats/[email protected]/mf/5270.0

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CONCLUSION

Every Australian household, business and community relies on the efficient and safe operation of our supply chains every day.

More than a role, there is a responsibility for the Australian Government to provide leadership and deliver a National Freight and Supply Chain Strategy that will produce the reforms the freight logistics industry needs.

The priorities contained in this document have laid out how the Australian Government can provide that leadership – and ensure that all Australians can share in the benefits that will flow from greater supply chain efficiency and safety.


APPENDIX A – ALC NATIONAL PLANNING PRINCIPLES1. All planning instruments must recognise that

planning for transport and logistics (including ensuring the continued efficient operation of existing ports and other freight and logistics infrastructure) is an urban priority. This means that caps, curfews and other restrictions on how infrastructure (particularly ports and airports) are operated and used must be avoided.

2. Compromised planning outcomes between industrial and residential uses fail both industry and residents. Planning instruments must incorporate sustainable land use planning solution that allows industry to operate and expand in order to increase economic activity and jobs near where people live. Planning instruments should therefore contain land use compatibility features including:a. land separation between residential and

freight and logistics lands; andb. retention and protection of lands that are

suitable in size for freight and logistics purposes.

3. Planning instruments must ensure that industrial lands and transport corridors are capable of operation 24 hours a day, seven days a week. State and territory governments must ensure planning instruments provide for mitigation measures when sensitive use developments (e.g. residential) are located close to freight infrastructure.

4. Planning instruments must identify a clear linkage of road and/or rail infrastructure between employment lands and other clearly identifiable freight generation points, as well as other significant transport infrastructure such as ports, airports and intermodals.

5. Governments must establish effective corridor protection mechanisms to ensure timely preservation of surface, subterranean and air corridors and strategic sites for future infrastructure priorities.

1. All planning instruments

must recognise that

planning for transport and

logistics (including ensuring

the continued effi cient

operation of existing ports

and other freight and logistics

infrastructure) is an urban

priority. This means that caps,

curfews and other restrictions

on how infrastructure

(particularly ports and

airports) are operated and

used, must be avoided.

2. Compromised planning

outcomes between industrial

and residential uses fails

both industry and residents.

Planning instruments must

incorporate sustainable land

use planning solutions that

allows industry to operate

and expand in order to

increase economic activity

and jobs near where people

live. Planning instruments

should therefore contain land

use compatibility features

including:

a. land separation between

residential and industrial

lands; and

b. retention and protection of

industrial and employment

lands that are suitable in

size for freight and logistics

purposes.

3. Planning instruments must

ensure that industrial lands

and transport corridors are

capable of operation 24

hours a day, seven days a

week. State and territory

governments must ensure

planning instruments provide

for mitigation measures when

sensitive use developments

(e.g. residential) are located

close to freight infrastructure.

4. Planning instruments must

identify a clear linkage of

road and/ or rail infrastructure

between employment lands

and other clearly identifi able

freight generation points,

as well as other signifi cant

transport infrastructure

such as ports, airports and

intermodals.

5. Governments must establish

eff ective corridor protection

mechanisms to ensure timely

preservation of surface,

subterranean and air corridors

and strategic sites for future

infrastructure priorities.

ALC NATIONAL PLANNING

PRINCIPLES

1

2

3

4

5

PO Box 20 DEAKIN WEST ACT 2600P:+61 2 6273 0755 E: [email protected]©Australian Logistics Council, April 2019

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